Citi technician Tom Fitzpatrick sees stocks sinking as much as 28% in the coming weeks, citing a "very significant break" above the 21 resistance level on the VIX. In gold, the next trending move is higher and ultimately will send the metal to new all-time highs. On the 10-year T-note, get this: he's looking at a "long-term channel" at ~1.15%.

please can you provide an actual source for this--thanks. ie where did you see anything about a 28% stock market decline in the article? he's forecasting a vix move up to 28%. he has 28 years experience. he sees the s+p coming down 26 points to its 200 day moving average. but thats about it folks so far as numbers close to 28 are concerned!

The Fed-fueled U.S. market has plenty of room to drop further - but talking about inverted head and shoulders patterns on derivative indices as if they move the market? I don't get it, personally. Your free use of inverted commas makes up for the distaste one gets after clicking on the link.

Btw, Tom Fitzpatrick seems principled: he called for a drop to 1000-1015 back on Nov 2, 2011 - he got close but then probably hammered because of QEII etc. http://bit.ly/uaOkd6.

In contrast, European indices, industrials and in particular financials have suffered heavily, with the big names not even making use of the LTROs - the current limit of EU intervention. With Socgen again at 15 tomorrow one can try some 13/14 basis turbo calls like last autumn, the risk would be worth it.